AngloGold Ashanti proposes $370 million acquisition of Corvus Gold
AngloGold Ashanti, one of the world’s largest gold mining companies, proposed an acquisition of Corvus Gold Inc. in July. Corvus is currently developing a major gold mine operation near Beatty.
AngloGold proposed the acquisition of Corvus in mid-July for an all-cash deal for all the companies common shares. The deal at the time was estimated at approximately $370 million.
“The proposal is fully aligned to our strategy of growing ore reserve, building low-cost production and generating sustainable returns,” said Christine Ramon, AngloGold Ashanti’s interim chief executive officer. “We have a unique opportunity to combine Corvus’ assets with our own – in the world’s top-ranked mining jurisdiction – to create a meaningful new production base for AngloGold Ashanti in the medium and longer term.”
AngloGold reported holding a 19.5% indirect interest in Corvus in a mid-July release. The interest is incorporated in British Columbia, Canada and listed on the Toronto Stock Exchange and NASDAQ, according to AngloGold’s release.
Corvus owns North Bullfrog and Mother Lode and other exploration assets in the Beatty District. According to AngloGold, these assets are in close proximity to the company’s exploration assets of Silicon, Transvaal and Rhyolite.
AngloGold’s release states, “The combination of Corvus’ and AngloGold Ashanti’s Nevada assets further consolidates one of the largest new gold districts in Nevada and provides the opportunity for AngloGold Ashanti to establish, in the medium and longer term, a meaningful, low-cost, long-life production base in a premier mining jurisdiction.”
Corvus responded to the offer, stating, “The principal terms of the proposal include AngloGold acquiring all issued and outstanding Corvus shares for consideration of CAD $4 per share payable in cash. Management and the Board of Directors, in accordance with their fiduciary duties and consistent with their commitment to maximize shareholder value, are reviewing the proposal and have no further comment at this time. Shareholders are not required to take any action at this time.”
